Casino concessionaire SJM Holdings is understood to be planning to expand its global investor base and work to improve its mass-market appeal. many kinds of media Report John DeCree and Max Marsh, equity research analysts at CBRE, said the analysts made their assessment after meeting with SJM Chief Financial Officer Christopher Ip on Tuesday.
They said Mr Yip wanted to break with tradition by being “proactive” in reaching out to global investors, noting that the operator had a “resurrection story brewing”. Leadership reshuffle The company reportedly plans to institutionalize the company in December 2023 and “reposition Grand Lisboa Palace to better meet the needs of mass clientele, increase visitation to the property, and identify operational efficiencies.”
Some of the measures taken to achieve this goal include launching new restaurant offerings, optimizing tenant mix and implementing new marketing strategies.
CBRE pointed out that the new direction of SJM Holdings still needs time to be implemented, but it is confident in SJM’s prospects and raised its SJM share price forecast from HK$2.50 to HK$4.00.
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CBRE analysts also expressed optimism about the local gaming industry despite concerns about the state of the Chinese economy.
They acknowledged that while Macau could be negatively impacted by mainland China’s economic slowdown, “pent-up” demand for leisure travel from China and other markets post-pandemic would help drive growth in Macau, which “has proven to be more resilient.”
They added: “Macau’s gross gaming revenue (GGR) continued to recover in May, suggesting a lower correlation with the Chinese economy.” GGR reached MOP20.2 billion (US$2.5 billion), an increase of nearly 30% year-on-year.
Analysts also pointed out that the central government’s support for Macau by including 10 additional mainland cities in Macau’s individual travel program is expected to promote the development of Macau’s tourism industry.
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